Page 287 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Chapter 6. Employee Benefits and Perquisites 273

disability payments, and the cost of temporary help to perform the work of the ill employee.
Due to preventive emphasis, this is of moderate executive interest.

Medical Examinations. This is another part of the wellness program that may apply uni-
versally to all employees or only executives. Even when all are eligible, executives may have
better programs.
Medical exams are very important to the executive since they are intended to identify
correctable problems before they advance into major concerns. The exam could be given by
the executive’s own doctor (perhaps up to a prescribed dollar maximum), a clinic (specializ-
ing in exams), and/or the company doctor. In some instances, the results of the exam are
made available to the company (as a tempering effect on manpower planning); invariably the
results are given to the executive’s own doctor(s).
Some examinations are performed at the employee’s place of work or in his or her own
community; others are coincidentally located near resort communities. If the latter, the
executive can conduct his or her own cardiovascular risk analysis on the tennis court or golf
course, in between examinations and tests.
Eligibility may be a function of job grade or organization rank, but the frequency and
extent of examination is in some instances related to age. The value of a complete medical
exam for a 25-year-old versus a 55-year-old are not the same in many eyes. Medical exams
are very cost effective, as the recipient has no imputed income whereas the company has a tax
deduction.

Physical Fitness Program. This is a key component of a wellness program. In some com-
panies, fitness programs are limited to executives; other companies make them available to all
employees believing that in the long run they promote good health and lower company med-
ical costs. Physical activity may also reduce work-related stress. Thus, the fitness program
does not simply promote better physical being, but also assists in shedding the tensions and
pressures of work. Since unrelieved stress may lead to depression, this could truly be a
perquisite intended to promote happier executives. In addition to stress management, nutri-
tion information, smoking cessation, and weight control programs are often available.
Some companies choose to build their own facilities, while others avoid construction and
related costs and join a medically oriented facility near the company site. Exercise equipment
ranges from the basic treadmill, rowing machines, stationary bicycle, medicine ball, and weights
to more elaborate setups with jogging tracks and courts for basketball, tennis, and volleyball.
Often under the supervision of trained company medical staff, executives are given
perhaps three hourly sessions a week to work through a concentrated schedule of activity
(usually during normal business hours). These sessions may lower the risk of coronary artery
disease, and just as important, many participants say they feel better and more able to cope
with work-related pressures and crises. Increased strength and endurance coupled with con-
cern for proper nutrition and weight management often result in more restful sleep, higher
energy levels, and a more attractive physique—all very important items to the executive.
To date, physical fitness programs are tax deductible to the company and do not result in
imputed income to the individual.
Dental

A shortcoming of most medical insurance plans is their limited degree of expense reimburse-
ment for dental problems; it is not atypical for a plan to cover only repair necessitated by an